Phillips 66
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.74%.
Did PSX Beat Earnings? Q1 2025 Results
Phillips 66 delivered a bruising first quarter, posting an adjusted loss of $0.90 per share that missed the consensus estimate of $0.72 by 25.56%, while revenue of $30.43 billion fell 5.06% short of expectations and tumbled 15.5% year-over-year. The culprit was unmistakably refining: the segment logged a $937 million pre-tax loss as crude utilization slumped to 80% — down sharply from 92% a year ago — amid what management described as one of the company's largest-ever spring turnaround programs, with turnaround expense alone hitting $270 million. Worldwide realized refining margins collapsed to $6.81 per barrel from $11.01 in Q1 2024, and the Los Angeles Refinery continued to weigh on results with $246 million in accelerated depreciation charges as it winds toward closure, a strategic retreat that mirrors moves by <a href="https://247wallst.com/investing/2026/02/18/marathon-petroleum-vs-phillips-66-which-refining-giant-wins-as-energy-sector-dominates-2026/">rival refining giants</a> reassessing California exposure. With the bulk of turnaround activity now behind it, Phillips 66 anticipates improved utilization and margins through the remainder of the year.
- Largest-ever spring turnaround program reduced refining volumes significantly, with crude capacity utilization at 80% vs. 92% in Q1 2024
- $1.085 billion pre-tax net gain on asset dispositions (Coop Mineraloel AG and Gulf Coast Express Pipeline)
- $246 million pre-tax accelerated depreciation on Los Angeles Refinery
- Midstream NGL business delivered strong pre-tax income of $508 million
- Higher market crack spreads partially offset lower refining volumes
- Chemicals capacity utilization reached 100% despite lower polyethylene margins
- Renewable Fuels impacted by transition from blenders tax credits to production tax credits
- Worldwide realized refining margins declined to $6.81/BBL from $11.01/BBL in Q1 2024
- Refining adjusted controllable costs rose to $9.07/BBL from $7.06/BBL year-over-year driven by higher turnaround expense
- International marketing segment boosted by $1.017 billion net gain on Coop Mineraloel AG disposition
“Our results reflect not only a challenging macro environment, but also the impact from one of our largest-ever spring turnaround programs, managed safely, on-time and under budget. Our assets, not impacted by planned maintenance, ran well.”
Phillips 66 CEO, on the earnings call
Forward Guidance & Outlook
Management indicated that with the bulk of the spring turnaround program behind them, Phillips 66 is well positioned to capture stronger margins as the year unfolds. The company continues to target returning over 50% of net operating cash flow to shareholders. The Iron Mesa gas plant in the Permian Basin is expected to commence operations in Q1 2027. The recently closed EPIC Y-Grade acquisition furthers the integrated NGL wellhead-to-market strategy aimed at providing stable cash flow in uncertain market environments.
PSX YoY Financials
Figures from SEC filings and company reports. Not investment advice.